What Is Strategic Management?

The central theme of the article “What is Strategic Management?” is the meaning of strategic management and understanding of its aspects. The complex nature of strategic management initiates difficulties in defining the term. Therefore, the article is attempting to respond to considerations involved in the definition of strategic management.

The case discussion led to provide a justified solution of the problem. A strategy has been defined as an organizing process that encompasses not only the formulation but also the implementation of the main organizational activities. In this case, strategic management has been noted to include both operational effectiveness and theorization of tactical forecasting (Harris et al., 2010). Therefore, it is

(2010) further notes that the external forces may include economy, technology, and competition. Other factors that may influence the organization are the global labor supply, supply chain management, stakeholders ' influence, and international operations of the firm. Besides, the ability of the enterprise to acquire information concerning the operation and behavior of other companies gives the organization an added advantage towards the achievement of its objectives. With adequate information relating to the functioning of other firms, a manager can reposition his organization to ensure that it appeals to a larger customer and client base than that of the competitors. Therefore, strategic management entails an adequate understanding of the organizational environment within the society and efficient technological and economic management (Harris et al., 2010). Good knowledge and awareness of the firm 's competitors are essential requirements as they enable the organization to plan and compete

For instance, through the employment of strategic management, all the financial participants, employees of the organization, clients, suppliers, and even the community as a whole would benefit (Harris et al., 2010). By means of value creation, those stakeholders who supply finance to the organization also aim to maximize their returns expecting that the organization manufacture’s products that are demanded by the consumers, while also creating a favorable working environment that ensures high productivity of the employees. Strategic management also requires alignment of the interests of shareholders by reorganizing the important strategies with the aim of achieving value creation in an integrative and viable